L.I. Head Start Child Development Services, Inc. v. Economic Opportunity Commission of Nassau County, Inc.

865 F. Supp. 2d 284, 2012 U.S. Dist. LEXIS 57501, 2012 WL 1414980
CourtDistrict Court, E.D. New York
DecidedApril 24, 2012
DocketNo. CV 00-7394(ADS)
StatusPublished
Cited by7 cases

This text of 865 F. Supp. 2d 284 (L.I. Head Start Child Development Services, Inc. v. Economic Opportunity Commission of Nassau County, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L.I. Head Start Child Development Services, Inc. v. Economic Opportunity Commission of Nassau County, Inc., 865 F. Supp. 2d 284, 2012 U.S. Dist. LEXIS 57501, 2012 WL 1414980 (E.D.N.Y. 2012).

Opinion

MEMORANDÚM OF DECISION AND ORDER

SPATT, District Judge.

. In a prior decision in this case, L.I. Head, Start Child Development Services, Inc. v. Economic Opportunity Commission of Nassau County, Inc., et al., 634 F.Supp.2d 290 (E.D.N.Y.2009), the Court determined that defendants Economic Opportunity Commission of Nassau County, Inc. (“EOC Nassau”), Economic Opportunity Council of Suffolk County, Inc. (“EOC Suffolk”), Yonkers Community Action Program, Inc. (“Yonkers CAP”) (collectively the “agencies”), and John L. Kearse (“Kearse”) violated their fiduciary duties under the provisions of the Employee Retirement Income Security Act (“ERISA”) by failing -to make and ensure the necessary contributions to adequately fund the Community Action Agencies Insurance Group (“CAAIG”) welfare plan (“Plan”). The CAAIG is essentially a health insurance plan for employees of anti-poverty agencies.

Following this liability determination, the Court directed the parties to appear for a damages hearing. In another decision dated and filed on October 20, 2011, the Court rendered a decision as to the damages awarded to the plaintiffs. In that decision, the Court directed the parties to respond in writing “As to the issues of prevailing party reasonable attorneys fees.” The attorneys for the parties did respond to the issue of the “prevailing party’s reasonable attorney fees.” This decision is now rendered on that issue.

I. The Parties Contentions

A. As to the Plaintiffs

In his initial “Memorandum of Law”, the plaintiffs’ counsel proposed a billing rate of $400 per hour for his services. Alexander A. Miuccio, Esq. (“Miuccio”), who has been plaintiffs’ counsel throughout this long and complicated litigation, has expertise in ERISA matters and more than 50 years of experience as a lawyer, mostly in the area of labor and employment law. Miuccio reviewed his lengthy efforts in this extended litigation, including “twenty-one trial sessions over a period of nineteen years.”

According to Miuccio, “Recent case law establishes that rates of $400 per hour for partners are considered reasonable in the Eastern District”. (Pltfs’ Memorandum at 3). In addition, Miuccio states that during the course of this protracted litigation, eight associate attorneys and six paralegals/law clerks rendered legal services to the plaintiffs. The proposed hourly rates for the associates range from $165 per hour to $320 per hour. The proposed hourly rates for the paralegal/law clerks range from $35 per hour to $95 per hour.

Miuccio also contends that his services conform to the Johnson factors as set forth in the seminal case of Arbor Hill Concerned Citizens Neighborhood Ass’n v. County of Albany, 522 F.3d 182 (2d Cir.2008), citing to Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir.1974). In this regard, Miuccio reviewed the Johnson factors, and contends that his services were in accord with each one of the factors, and that “applying the Johnson factors, plaintiffs should be awarded the fees requested.” (Pltfs’ Memorandum at 9).

[287]*287In addition, Miuccio contends that he should be fully compensated even though the plaintiffs were unsuccessful on some of their claims. He bases this contention on the ground that the plaintiffs have now achieved the full benefit of what they sought in bringing this lawsuit; namely the plaintiffs have obtained monetary relief in a damages award of $832,945, which actually exceeded the relief sought by the plaintiffs in their complaint. Therefore, says Miuccio, “as the plaintiffs have achieved the maximum degree of success in this lawsuit, their counsel should recover a fully compensated fee, which encompasses all hours reasonably expended in the litigation, including the hours spend on unsuccessful claims.” (Pltfs’ Memorandum at 11).

Here, according to Miuccio it is evident that the plaintiffs showed a high degree of success on their two victorious claims; namely, the recovery achieved will cover the amount sought in the complaint. Miuccio concludes by saying that, “where a case results in an overall success for plaintiffs, their counsel is entitled to substantial, if not full, compensation for time spent on both successful and unsuccessful issues.” (Pltfs’ Memorandum at 12).

B. As to the Defendants

Initially, the defendants contend that the plaintiffs are not entitled to an award of attorney’s fees. To start with, say the defendants, “the award of attorney’s fees is discretionary.” (Dfts’ Joint Memorandum at 3). The relevant statute provides: “In any action under this subchapter ... by a participant beneficiary or fiduciary the Court in its discretion may allow a reasonable attorney fee and costs of action to either party”. (Emphasis added). 29 U.S.C. § 1132(g)(1). The defendants contend that the plaintiffs do not qualify as “participants, beneficiaries or fiduciaries” and are therefore not entitled to an award of attorneys fees.

The defendants also take issue with the Court’s decision of October 20, 2011, in which the Court held that the Supreme Court- in Hardt v. Reliance Standard Life Insurance Co., — U.S. —, 130 S.Ct. 2149, 176 L.Ed.2d 998 (2010) overruled the five factor test set forth in Chambless v. Masters, Mates & Pilots Pension Plan, 815 F.2d 869, 871 (2d Cir.1987). The defendants contend that notwithstanding the rule in Hardt it may still be appropriate to utilize the five factor test. In this regard, the defendants cited Toussaint v. JJ Weiser Inc., 648 F.3d 108, 110-111 (2d Cir.2011), which held that, “a court may apply — but is not required to apply — the Chambless factors in channeling its discretion when awarding fees under § 1132(g)(1).”

The five Chambless factors are as follows:

(1) the degree of the offending party’s culpability or bad faith, (2) the ability of the offending party to satisfy an award of attorney’s fees, (3) whether an award of fees would deter other persons from acting similarly under like circumstances, (4) the relative merits of the parties’ positions, and (5) whether the action conferred a common benefit on a group of pension plan participants.

Chambless, 815 F.2d at 871.

However, in Hardt, the Supreme Court held that these five factors “bear no obvious relation to § 1132(g)(l)’s text [and therefore] are not required for channeling a Court’s discretion when awarding fees.” Instead, the new test enunciated by the Supreme Court is to show that the prevailing plaintiff has achieved “some degree of success on the-merits.” Hafdt at 2156, 2159. In this case, the Court has determined that the plaintiffs have achieved more than some degree of success and [288]*288their counsel is entitled to prevailing party-counsel fees.

Next, the defendants contend that if the Court does award an attorney’s fee to the plaintiffs, the amount should be determined by the rule in the Arbor Hill case. See Arbor Hill Concerned, Citizens Neighborhood Ass’n v. Cty. of Albany, 522 F.3d 182, 184 (2d Cir.2008). Also, as set forth in Blum v. Stenson,

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865 F. Supp. 2d 284, 2012 U.S. Dist. LEXIS 57501, 2012 WL 1414980, Counsel Stack Legal Research, https://law.counselstack.com/opinion/li-head-start-child-development-services-inc-v-economic-opportunity-nyed-2012.